29 Chinese Property Developers Profits Grew Over 100% Last Year
Dou Shicong
DATE:  Feb 02 2018
/ SOURCE:  Yicai
29 Chinese Property Developers Profits Grew Over 100% Last Year 29 Chinese Property Developers Profits Grew Over 100% Last Year

(Yicai Global) Feb. 1 -- Of the 82 Chinese listed real estate companies that have issued their annual earnings forecasts, more than 60 -- 73 percent -- will have achieved net profit growth, while the profits of 29 companies rose more than 100 percent. Only eight firms are braced for a loss, or fewer than 10 percent, statistics real estate agency Centaline issued yesterday show.

The jump in profits mainly favored small and medium-sized real estate developers, e.g. Guangdong-based Shirong Zhaoye Co. is forecast to reap a total net profit of CNY895 million (USD142.29 million) to CNY941 million last year, up almost tenfold.  Kingland Technology Co. is expected to bring in net profits of between CNY280 million and CNY330 million, an increase of over twentyfold.

The profit growth of large developers was less dizzying, however, mainly because of a larger base. Poly Real Estate Group Co. took in net profit of CNY16 billion last year, up a mere 26 percent from the previous year. Greenland Holdings Corp. realized net profit of CNY19 billion for a 32 percent increase.

The Chinese government stepped up its property market controls to curb skylarking house prices last year. However, the  volume of property deals and sales still held to rapid growth. The sales area of commercial housing nationwide last year reached 1.7 billion square meters, up 8 percent from a year ago, with sales value reaching CNY13 trillion, an increase of 14 percent, both hitting record highs.

Real estate companies may face greater financial pressure this year, Zhang noted. Tighter market regulation may constrict some enterprises' financing channels as banks temporarily suspend new credit lines to the realty sector.

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Keywords:   Poly Real Estate Group,Greenland Holdings Corporation,Centaline Group,Profit Growth